Vodafone Idea to inject equity worth Rs 14,000 crore under revival plan

14 Jun 2023 , 10:32 AM

According to people familiar with the ongoing discussions, Vodafone Idea Ltd (Vi) intends to infuse a total equity of Rs 14,000 crore in the near term as part of its business revival plan.

The existing promoters Aditya Birla Group (ABG) and UK’s Vodafone Group Plc plans to put in about half of the overall amount.

As per the plan submitted to the government, ABG and Vodafone Group will make investment in the fresh equity of the company to the tune of Rs 2,000 crore. Since the government’s revival package in September 2021, the promoter companies have already invested Rs 5,000 crore in the sick unit. 

Under the terms of revival plan, the promoters will help the company to fetch additional Rs 7,000 crore either as direct equity or via convertible structures from external investors.

According to the people cited above, Vi has also sought additional borrowings of Rs 25,000 crore in rupee loans from domestic lenders in exchange for the committed fresh equity.

Following this development, Vodafone Idea’s counter surged 5.19% at Rs 8.10, against the previous close of Rs 7.70 on NSE.

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